Intel 2000 Annual Report Download - page 30

$539 million during 2000 and $200 million during 1999. This debt is rated A-1+ by Standard & Poor's and P-1 by Moody's.
Long-term debt Long-term debt at fiscal year-ends was as follows:
The company has guaranteed repayment of principal and interest on bonds issued by the Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control Facilities Financing Authority. The bonds are adjustable and redeemable at the option of either the
company or the bondholder every five years through 2013 and are next adjustable and redeemable in 2003.
In September 2000, all of the convertible subordinated notes were exchanged for approximately 7.4 million shares of unregistered Intel
common stock. During 1999, the company assumed the notes with a principal amount of $115 million as a result of the Level One
Communications, Inc. acquisition (see "Acquisitions"). The value assigned to the notes was approximately $212 million, based upon the
assumed conversion price at the date of acquisition. Amortization of the premium substantially offset the interest expense on the notes.
The Irish punt borrowings were made in connection with the financing of manufacturing facilities in Ireland, and Intel has invested the
proceeds in Irish punt denominated instruments of similar maturity to hedge foreign currency and interest rate exposures.
As of December 30, 2000, aggregate debt maturities were as follows: 2001—$10 million; 2002—$19 million; 2003—$132 million; 2004—
$27 million; 2005—$29 million; and thereafter—$500 million.
Available-for-sale investments
The returns on a majority of the company's marketable investments in long-term fixed rate debt and certain equity securities are swapped to
U.S. dollar LIBOR-based returns. The currency risks of investments denominated in foreign currencies are hedged with foreign currency
borrowings, currency forward contracts or currency interest rate swaps. (See "Derivative financial instruments" under "Accounting policies.")
Investments in debt securities with maturities of greater than six months consist primarily of A and A2 or better rated financial instruments
and counterparties. Investments with maturities of up to six months consist primarily of A-1 and P-1 or better rated financial instruments and
counterparties. Foreign government regulations imposed upon investment alternatives of foreign subsidiaries, or the absence of A and A2 rated
counterparties in certain countries, result in some minor exceptions. Intel's practice is to obtain and secure available collateral from
counterparties against obligations whenever Intel deems appropriate. At December 30, 2000, debt investments were placed with approximately
240 different counterparties.
Available-for-sale investments at December 30, 2000 were as follows:
(In millions) 2000 1999
Payable in U.S. dollars:
Puerto Rico bonds adjustable 2003, due 2013 at 3.9%-4.25% $
110
$
110
Convertible subordinated notes due 2004 at 4% —
210
Other U.S. dollar debt
5
6
Payable in other currencies:
Irish punt due 2001-2027 at 3.5%-13%
602
583
Other non-U.S. dollar debt —
46
717
955
Less current portion of long
-
term debt
(10
)
—
Total
$
707
$
955
(In millions)
Cost
Gross
unrealized
gains
Gross
unrealized losses
Estimated
fair
value
Commercial paper
$
7,182
$
24
$
(5
)
$
7,201
Bank time deposits
3,171
2
—
3,173
Floating rate notes
2,011
10
(7
)
2,014
Corporate bonds
1,195
5
(16
)
1,184
Loan participations
903
—
—
903